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Overview
Digital Health Market size is $129.29 billion in 2018, growing at a CAGR of 23.40 % during the forecast period 2019-2024 and the market is forecast to reach $456.5 billion by 2024. Increasing adoption of smartphones and tablets by healthcare professionals and rising development of IT in healthcare along with favorable government regulations are the major factors driving the growth of the market. Increasing adoption of electronic intensive care unit (E-ICU) models in the healthcare industry demand will further enhance the overall market demand of digital health systems during the forecast period.
Key Takeaways
- North America dominates the Digital Health Market owing to high technological adoption and favorable government initiatives to the healthcare industry.
- Increasing penetration of smartphones and smart wearable devices for personalized medicine and initiatives by the government organizations and healthcare communities to create awareness about the use of digital health is likely to aid in the market growth.
- Detailed analysis on the Strength, Weakness and opportunities of the prominent players operating in the Digital Health Market will be provided in the report.
- High capital cost along with the installation of advanced systems in developing countries will create hurdles for the digital health market.
Technology - Segment Analysis
mHealth(mobile
health) held the largest share in the digital health market in 2018 and will
grow at a CAGR of 18.4% during the forecast period 2019-2024.This is mainly
owing to the factors such as rising adoption of mHealth technologies among
physicians and patients, increasing trend of preventive healthcare, and rising
funding for mHealth startups. Growing need for improving workflow efficiency in
hospitals and other healthcare centers is also propelling the demand for
mHealth services in healthcare administration. The high growth for this segment
can also be attributed to the rising adoption of wearables and apps to monitor
health of patients. Wearables such as pulse oximeters, blood glucose monitors,
sleep apnea monitors have wide range applications including disease tracking,
treatment and diagnosis, point of care diagnostic, remote data collection &
remote monitoring. Digital Health systems is estimated to be the fastest growing
segment during the forecast period 2019-2024, owing to rising government
initiatives to promote digital health and increase in the demand for electronic health
record (EHR) system.
Component - Segment Analysis
Services holds a
major share in the digital health market in 2018 and is estimated to grow at a
CAGR of 13.06% during the forecast period 2019-2024. The amount of data has
been steadily increasing since the introduction of IT in healthcare; data
storage and maintenance costs have increased over the past few years. In fact,
there is a lack of skilled IT professionals in healthcare organizations to
manage this huge amount of data. As a result, the rising costs, together with
the lack of qualified personnel, forced most institutions to opt for the maintenance.
With the emergence and introduction of cloud-based technology in healthcare,
the share of the services segment has risen up significantly and support
services provided by the healthcare IT companies.
Geography - Segment Analysis
North America dominated the digital
health market share with more than 38.6%, followed by Europe. High
technological adoption along with favorable government initiatives such as
investment in electronic medical records (EMR) are some of the factors driving
the growth of the market. Implementation
of HITECH Act and HIPAA Act and promoting the use of electronic health data
will foster market growth in the region. Rise in the prevalence of chronic diseases, and increase
in geriatric population will also support the growth of the market. Europe
is also having a significant share in the digital health market owing to the
rising demand for the innovative technologies and systems for the effective
management of chronic ailments such as diabetes, orthopedics, cancer and favorable
government initiatives such as implementation of e-Health law that aims at
creation of electronic health card and setting up infrastructure for
telemedicine.
However, Asia-Pacific is estimated to
grow at a higher CAGR during the forecast period. This is owing to the increasing
penetration of smartphones and smart wearable devices and rising adoption of
mHealth services among the healthcare practitioners. The growing joint ventures
for digital health solutions and government initiatives to create awareness
about digital health are also some of the factors contributing to the growth of
digital health market. The rapid increase in aging population, rising incidence
of chronic disease, and high medical errors are expected to fuel the growth of
the digital health market in this region.
Drivers – Digital Health Market
- Technological Advancements in Healthcare
The key factors driving the
growth of the digital health sector are rapidly changing technology across
healthcare IT, including cloud-based storage systems coupled with booming
adoption of smartphones, laptops and tablets by healthcare providers and
hospitals. Increasing
healthcare IT innovation along with supporting regulations has facilitated the
adoption of various healthcare technologies such as electronic medical records
(EHR) and remote monitoring sensors, and wearable which is driving the growth
of the market.
- Initiatives by government associations and increasing venture capitalists funding in start-ups.
Initiatives
by the government organization and healthcare communities to create awareness
about the use of digital health and easier government regulations for the adoption
of various healthcare IT solutions will boost the market. Raising venture
capital and funding from healthcare providers to the start-ups that provide
such services will further fuel the market growth.
Challenges – Digital Health Market
- High cost of devices & security concerns
High capital cost and installations of
technologically advanced systems will hamper the market growth. Rising security
concerns for data such as cyber-attacks and unauthorized access to information
technology (IT) systems can also hinder digital health market growth in the
coming years.
Digital Health Industry Outlook
Product launches, merger &
acquisitions and R&D activities are key strategies adopted by players in
the digital health market. In 2018, the market of digital health is consolidated
by the top ten players. Digital Health top 10 companies are AllScripts
Healthcare Solutions, Inc., Biotelemetry, Inc., eClinicalWorks, iHealth Lab,
Inc., LifeWatch AG, McKesson Corporation, Koninklijke Philips N.V., AT & T,
Cerner Corporation, Cisco Systems, Athenahealth Inc., Qualcomm Inc. among
others.
Acquisitions/Product Launches
- In March 2018, Allscripts launched Avenel, which is a mobile-first, cloud based EHR that uses machine learning to reduce time in clinical documentation and works more like an app.
- In April 2018, Commonwealth Medical Association launched the Commonwealth Center For digital health for promoting digital health in the commonwealth nations.
- In October 2018, the collaboration of Hifinite and Indie Health announced the proposed plan to launch a hiCare 3.0 telehealth and remote monitoring platform at connected healthcare conference.
- In March 2019, TriNetX, a data analysis company, in clinical trials raised and estimated US $40 M with an aim to expand the company’s operations across Asia Pacific region.
Digital Health Market Research Scope:
The base year of the study is
2018, with forecast done up to 2024. The study presents a thorough analysis of
the competitive landscape, taking into account the market shares of the leading
companies. These provide the key market participants with the necessary
business intelligence and help them understand the future of the Digital Health
Market. The assessment includes the forecast, an overview of the competitive
structure, the market shares of the competitors, as well as the market trends,
market demands, market drivers, market challenges, and product analysis. The
market drivers and restraints have been assessed to fathom their impact over
the forecast period. This report further identifies the key opportunities for
growth while also detailing the key challenges and possible threats.